2008-09-30

Why I feel positive after recent events

You know, I actually feel very
positive.

I am a young worker and near the start
of my career. Having this meltdown happen at the start of my career
is perfect, because it will set many things back into balance that
have been unbalanced for years, even decades – risk versus
reward, debt levels, inflated asset pricing, unaffordable housing.

The system has been awfully unstable
for a long time, this is not new, and serious selling is expected.
Too many bad loans, too much leverage, too little government
oversight, and high debt levels and unaffordable living.

Delaying the inevitable, for instance
through bailouts and patch work, only delays this thing and makes the
eventual hurt worse. So let's get it over with ... hopefully without
burdening me (the future taxpayer) with massive costs and bailouts.
Why should I, at my young age, spend the next few decades paying for
greedy baby boomers who need support of their inflated asset prices?
No bailouts, is what I say.

And manufacturing and engineering. Man
oh man, this is going to be great for getting those industries back
on track. For decades, investment has fled physical production and
gone to these “service” industries. How many high paid
MBAs can you pay to shuffle paper and skim fees? That bubble had to
burst. We are seeing it happen now. Lots of business people will lose
their jobs, because a lot of them are redundant. More importantly,
few business people and financial professionals add any value to
society.

Getting them out of the way will
redirect investment to research, development, construction,
manufacturing, and engineering. We will put time and effort back into
development and discovery, build all the new things we need, fix all
the ageing infrastructure around us. I see a very bright future
ahead.

- Perpetual Bull

EDIT: After this article was posted,
governments worldwide quickly bailed out large financial
institutions, and spent trillions of current and future money. I am
not enthusiastic about the bailouts and their cost to society, and I
feel somewhat less positive since the endless bailouts started.
Unfortunately, current government actions will saddle my generation
with a lasting burden.